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Peter's Printers has contracts to complete weekly supplements required by forty-six customers. For the year 2019, manufacturing overhead cost estimates total $420,000 for an annual
Peter's Printers has contracts to complete weekly supplements required by forty-six customers. For the year 2019, manufacturing overhead cost estimates total $420,000 for an annual production capacity of 12 million pages. For 2019, Peter's Printers has decided to evaluate the use of additional cost pools. After analyzing manufacturing overhead costs, it was determined that number of design changes, setups, and inspections are the primary manufacturing overhead cost drivers. The following information was gathered during the analysis: conto Design changes 560,000 Setups 320,000 Inspections 40.00 Total manufacturing overhead costs $420,000 During 2019, two customers, World Makers and Happy Studies, are expected to use the following printing services: Activity World Makers Happy Studios Pages 60.000 76,000 Design changes 10 0 Setups 20 10 Inspections 30 38 4 What is the cost driver rate it manufacturing overhead costs are considered one large cost pool and are assigned based on 12 million pages of production capacity? Total manufacturing cost 420000/12000000 Overhead rate=0.035 per page c F6 F8 F9 F10 F11 F12 ? & 3 View Help Open in Desktop App Editing B I U A A A A Styles P Find v Setups 320,000 40,000 Inspections Total manufacturing overhead costs $420,000 During 2019, two customers, World Makers and Happy Studios, are expected to use the following printing services: World Makers Happy Studios Pages 60,000 76,000 Design changes 10 0 Setups 20 10 Inspections 30 38 4. What is the cost driver rate if manufacturing overhead costs are considered one large cost pool and are assigned based on 12 million pages of production capacity? Total manufacturing cost 420000/12000000= Overhead rate=0.035 per page 5. Using pages printed as the only overhead cost driver, what is the manufacturing overhead cost estimate for World Makers during 2019? Page Break Short Answer (5 marks) The following costs are attributed to the Quilt Company: Purchase of raw materials tall direct) 5291,100 Direct labour cost $141,800 o i 15
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